Connect with us

Hi, what are you looking for?

The American Genius Real EstateThe American Genius Real Estate

Real Estate Big Data

Home sales dip 5.4% in June, days on market hit historic low

Existing home sales fell in June, the median home price hit a historic high, and the average days on market also hit a historic low. Combined with rising interest rates squeezing even more folks out of the market, the housing market is in new territory.

existing home sales

For a fifth consecutive month, the volume of existing home sales dipped by 5.4% in June from May to a seasonally adjusted annual rate of 5.12 million, according to the National Association of Realtors (NAR). Home sales are down 14.3% compared to June of 2021.

NAR data indicates that home sales fell in all four regions annually, and saw declines between May and June nationwide except for in the Northeast where they stagnated.

“Both mortgage rates and home prices have risen too sharply in a short span of time.” Dr. Lawrence Yun

The median home sale price spiked 13.4% from a year ago to $416,000, a new record high and the 124th month in a row of annual increases, the longest-running streak on record.

Another record was hit in June with average days on market falling to 14 days (down from 17 days in June 2021), with prices rising in all regions. Since NAR began recording this data point in 2011, it has never fallen this low.

Advertisement. Scroll to continue reading.

“Falling housing affordability continues to take a toll on potential home buyers,” said NAR Chief Economist, Dr. Lawrence Yun. “Both mortgage rates and home prices have risen too sharply in a short span of time.”

Practitioners feeling a shift in the market are right – we’re in new territory now.

Meanwhile, inventory rose to 12.6 million, or 3.0 months at the current monthly sales pace. That feels like relief in a sector where inventory has remained restrictively tight in recent years, but a 2.4% annual increase is still not enough to alleviate pressure on the market.

Dr. Yun has said hundreds of times over the years that new home construction is the only meaningful answer, but with housing starts just hitting their lowest level since September, no one is holding their breath for relief.

“Finally, there are more homes on the market,” Dr. Yun observed. “Interestingly though, the record-low pace of days on market implies a fuzzier picture on home prices. Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”

Advertisement. Scroll to continue reading.

For years, first time home buyers accounted for 33-34% of sales, and are now down to 30%, but up from 27% in May. This metric is used to gauge the health of the market, and when first time buyers are edged out of the market, there are problems at hand.

Individual investors or second home buyers accounted for 16% of all home sales in June, and all-cash sales accounted for 25% of sales, both unchanged from May.

existing home sales

Lani is the COO and News Director at The American Genius, has co-authored a book, co-founded BASHH, Austin Digital Jobs, Remote Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

AdBlocker Message

Our website is kept FREE to you by displaying online ads to our visitors. Please consider supporting us by disabling your ad blocker OR subscribing to our email newsletter: https://theamericangenius.com/housing/get-the-newsletter/

The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox.

Advertisement

KEEP READING!

Real Estate Big Data

(REAL ESTATE) Despite rising mortgage rates and tightening underwriting standards, home sales jumped annually at a rate not seen since before the crash.

Real Estate Big Data

(REAL ESTATE) Existing home sales slide for the month but surge for the year - challenges remain, but Kudlow declares this a "housing boom."

NAR Reports

(REAL ESTATE NEWS) Existing home sales rose in October despite continually tight inventory levels and rising home values.

NAR Reports

(REAL ESTATE NEWS) Existing home sales aren't looking super hot this month, but it's not the bad news that you're thinking - let's discuss!

The American Genius' real estate section is honest, up to the minute real estate industry news crafted for industry practitioners - we cut through the pay-to-play news fluff to bring you what's happening behind closed doors, what's meaningful to your practice, and what to expect in the future. We're your competitive advantage. The American Genius, LLC Copyright © 2005-2022